Average Consumer Credit Scores on the Rise
As of September 10, 2019, consumer FICO credit scores hit a new high with the average, nationwide credit score increasing 11 points during the preceding quarter, according to the Washington Post. The current national average is 706, an impressive feat, considering that in October 2009, the national average was at 686. This is great news for consumers, but also for the nationwide economy. Higher credit scores yield greater consumer confidence that spurs spending.
Contributing Factors for Higher Credit Scores
There are multiple factors that play into the rising credit scores for the nation. Among them are internal things on a consumer by consumer basis as well as the widespread events, such as a growing economy. These are just a few reasons why consumer credit scores are on the rise and flying high for the time being.
- Consumers are monitoring their credit more closely than ever. From fears of data breaches and identity theft to efforts to become more informed consumers, people are paying attention to their credit scores and actively seeking to improve them.
- Ten years of growth for the national economy. This increases consumer confidence. However, the great recession is still fresh enough on the minds of many that they aren’t willing to risk falling into the same trap again – so most people are working to keep their debts manageable.
- Lower unemployment rates. This means more people have jobs. More importantly, fewer people are underemployed than was the case 10 years ago.
- People are more educated about debt and how to make it work in their favor while avoiding potential consequences of negative debt practices.
The wide proliferation of credit monitoring services certainly helps. Experian operates with different numbers and scores than FICO credit scores, however, their State of Credit: 10 Year Lookback they came to the same conclusion. Credit scores are, indeed, on the rise. Among the interesting details to arise from their report is the fact that not all demographics achieved the same results.
According to the Experian report, the highest credit scores belonged to those aged 72 and older. This is how the numbers played out.
- 732 score for those aged 72 and older.
- 706 score for those between the ages of 51 and 71.
- 662 score for those between the ages of 36 and 50.
- 644 score for those between the ages of 22 and 35.
- 639 score for those between the ages of 18 and 21.
If your credit score isn’t quite hitting on these numbers or you’d like to see improvements, now is the time to begin making changes. Small steps can yield big results. One of the first areas to turn for improvement is your credit utilization. That is the amount of credit available to you that you are actually using. Most scoring agencies prefer that number to be lower than 30 percent, meaning you have 70 percent of that balance available to spend. It shows restraint and responsibility.
The other thing you can do is work to improve your alternative PRBC credit score for faster results to help you achieve your financial goals. Contact us today to learn more.